a.
Introduction:Public Company Accounting Oversight Board (PCAOB) lays down the auditing and accounting standards which are to be followed by the public companies. It is a non-profit organization with an aim to safeguard the interests of various stakeholders; especially investors.
To identify:The role of Public Company Accounting Oversight Board (PCAOB) that affects the external
b.
Introduction:Securities and Exchange Commission (SEC) was established in 1934 with the aim to regulate the capital market and its system. The SEC is authorized to establish GAAP standards for publicly traded companies
To identify:The role of Securities and Exchange Commission (SEC) that affects the external auditing process.
c.
Introduction:American Institute of Certified Public Accountants (AICPA) regulates accounting profession within the country and issues codes of professional conduct that are to be followed by the AICPA members.
To identify:The role of AICPA that affects the external auditing process.
d.
Introduction:Centre for Audit Quality (CAQ) is focused on increasing the investors’ confidence in the global stock market.
To identify:The role of CAQ that affects the external auditing process.
e.
Introduction:International
To identify: The role of IAASB that affects the external auditing process.
f.
Introduction:Financial reporting council (FRC) is an independent regulatory body which helps in promoting securities investment through fair and just corporate governance and financial reporting.
To identify:The role of FRC that affects the external auditing process
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
- Professional guidance indicates that the auditor should consider revenue recognition to be high risk in planning an audit of a company’s financial statements. a. Identify the activities that affect the revenue cycle. b. Identify the financial statement accounts typically associated with the revenue cycle.arrow_forwardDefine the key terms below that relate to auditing of government and not-for-profit organizations in your own words. Be sure that you relate the terms to each other in your paragraph. Attestation engagement Generally Accepted Auditing Standards (GAAS) Opinion audits Materiality Financial auditarrow_forwardSelect the necessary words from the list of possibilities to complete the following statements: assertion, codification, financial reporting framework, generally accepted accounting principles, International auditing and assurance standards board, interpretations, professional skepticism, quality control, shareholders, and statements on auditing standards Statements Answer 1. The purpose of an audit conducted in accordance with generally accepted auditing standards is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable __________. 2. The serially numbered pronouncements issued by the Auditing Standards Board of the AICPA as generally accepted auditing standards are known as __________. 3. Investors need to compare financial statements of different companies. The standards most frequently followed to prepare…arrow_forward
- Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningAuditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College PubFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College